Kelly Oliveira        Reporter Agência Brasil

Brasília – In its Inflation Report (“Relatório de Inflação”) that was released today, December 22, the Brazilian Central Bank says that the modernization of the Brazilian economy could be setback by a fragile global economy. The report does not mince words: “…against this background, the effect on exports will be direct and negative, with the result that volume will be reduced.” The report says the Central Bank is working with a forecast for a prolonged period of low growth around the globe, but does not foresee and “extreme events”.

The report goes on to say: “On the other hand, less credit and confidence will put a brake on domestic investment and consumption.”

The report concludes with a further lowering of 2011 growth. The Central Bank has revised its forecast down from 3.5% to 3%. However, it maintains its forecast of GDP growth of 3.5% for 2012.

Allen Bennett – translator/editor The News in English

Link - Desaceleração da economia global pode tornar mais moderada atividade econômica no país, indica BC

Link - BC projeta menor crescimento da economia este ano e expansão de 3,5% em 2012